Mexico: Milk production will increase by only 1 percent by 2022

Published 2021년 11월 12일

Tridge summary

The Mexican dairy market is showing signs of growth, with resilience in the face of economic challenges due to the dairy sector's resilience and strategic positions of producers. Despite economic setbacks in 2020, the sector has seen growth, with a projected increase in production for 2022. However, high feed costs and low milk prices are posing challenges for farmers. The dairy sector is divided into large industrialized dairies and a large number of small operations, with the Lagunera Region being the largest milk-producing area. Consumption patterns have seen fluctuations, and there is potential for investment in processing technologies to extend shelf life. The impact of the 2020 pandemic on milk and dairy product consumption in 2021 and 2022 is still uncertain, but domestic consumption has stabilized after an initial decline.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

USDA-GAIN FOREIGN AGRICULTURAL SERVICE ANNUAL REPORT. INFORURAL translation. The Mexican dairy market continues to offer growth potential for both US exporters and Mexican producers. Despite the pandemic-related economic crises in 2020, the dairy sector has proven resilient. For producers, having a resilient dairy herd, access to water and substantial domestic feed production have helped continue to increase milk supply and yield. While ongoing macroeconomic challenges, such as rising inflation and unemployment, have slowed household dairy purchases, a growing population, and the ongoing reopening of key sectors, such as tourism, hotels, restaurants and institutions (HRI), are helping to keep the demand for dairy afloat. Production in 2021 is estimated at 12.85 million metric tons (MT). While production in 2022 is forecast at 12.98 million MT, an increase of one percent. Mexico's poor macroeconomic conditions and pandemic-related market shocks led many dairy farmers into ...

Source: Inforural